New Zealand Private Capital Monitor 2021 - Full year review
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New Zealand Private Capital Monitor 2021 Full year review
2 | New Zealand Private Capital Monitor 2021
Foreword
We are delighted to bring you the eighteenth full year edition of the
New Zealand Private Capital Monitor.
This edition of the New Zealand Private Capital Monitor consolidates the
findings from previous surveys and provides a more detailed review of 2020
including commentary on the industry from the New Zealand Private Capital
Association’s Chair.
2020 was another year of record activity, with $2.53 billion of combined
investments and divestments across private equity and venture capital
transactions, weighted heavily towards investment activity. Buy-out activity
in particular showed significant growth on the prior year driven by the EQT
Infrastructure acquisition of Metlifecare.
Total investment activity continued to be strong in 2020 totalling $2,419 million,
a strong increase from 2019, driven by a higher number of investments in 2020
(128) compared to 2019 (77). There was an increase in average transaction
value in 2020 ($18.9 million) compared to 2019 ($14.9 million) whilst still
being significantly higher than the 10 year average of $10.3 million.
Private equity investment excluding venture capital reached $2,292 million,
compared with $1,034 million in 2019 and $824 million in 2018.
Venture and early stage investment in 2020 totalled $127.2m an increase
from $112.2m in 2019.
International investment in software / technology companies continues the
theme seen in recent years.
The commitment to growing New Zealand’s businesses has been clear in
responses to the Monitor, with the continued plans for their investee companies
focussing on growth in exports and new markets, increased capital expenditure
and market acquisitions.
Fund-raising activity in 2020 by New Zealand funds raised over $765 million of
capital and further fundraisings are anticipated for 2021.
New Zealand capital markets showed decreased activity in 2020 with respect to
new listings, however significant capital raises were undertaken by existing public
companies in response to Covid-19. The outlook for future years appears positive
as New Zealand and the global economy recovers from the Covid-19 pandemic,
and portfolio companies assess options for new capital raising.
Private capital is a significant contributor to the New Zealand capital market
eco-system. With a global recovery from Covid-19 still in progress, private equity
and venture capital fund managers can provide much needed expertise and
assistance to founders and managers, as well as additional capital support.
We see private capital continuing to play an important role throughout the
coming year in helping many New Zealand businesses stabilise and grow as the
New Zealand and ultimately global economies return to a sense of normality.
NZ Private Capital promotes the growth story with targeted communications
that feature business owners’ experience working with private equity and venture
capital managers.
Colin McKinnon
Executive Director
NZ Private Capital
New Zealand Private Capital Monitor 2021 | 3
4 | New Zealand Private Capital Monitor 2021
Executive summary
The year to 31 December 2020 was characterised by a record level of overall activity Investments
of NZ$2,531m, an increase of $351m from 2019 ($2,180m) driven by record levels
of activity in the Mid-market category. Overall activity in 2020 is also significantly • Total investment value in 2020
higher than the historical 10-year average of $1,315m. was $2,419.0m spread across
128 transactions.
Mid-market investment activity in 2020 totalled $735.8m, an increase from • The total number of investments
$337.1m achieved in 2019 which was the previous record. Divestment activity with known values has increased
with disclosed deal values in 2020 was $111.9m, higher than the $91.9m recorded from 77 in 2019 to 128 in 2020.
in 2019.
• The total average transaction value
Meanwhile, 2020 continued to be a strong year in the Venture space, total increased from $14.9m to $18.9m,
investment activity of $127.2m represents an increase on 2019 investment with Venture average transaction
of $112.2m. value decreasing from $2.4m to
Overall Buy-out activity in 2020 was $1,556.0m, broadly inline with the $1,570.6m $1.4m and the buy-out average
recorded in 2019. However, 2020 activity was entirely investment related and driven increasing from $317.5m in 2019 to
by EQT Infrastructure’s $1.3bn acquisition of Metlifecare. $778.0m in 2020 as a result of the
EQT transaction.
• Mid-market investment activity has
Overall activity summary 2010 to 2020 increased from $398.9m in 2019
to $735.8m, a record year in 2020
3000 and is significantly higher than the
historical 10 year average
of $284.9m.
2500
• Average investment value for
mid-market investments in 2020
2000
was $21.6m which is higher than
2019 ($13.8m).
NZ$ million
• Total Venture investment increased
1500 from $127.2m from $112.2m
in 2019.
1000 Divestments
• Total divestment value in 2020
500 decreased significantly to $111.9m
from $1,034.2m in 2019.
• Divestment activity in 2020 included
0 Archer Capital’s divestment of
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
New Zealand Pharmaceuticals Ltd,
Champ Ventures’ divestment of
Investment Divestment TR Group Limited and Direct
Capital’s divestment of Bayley
Corporation Limited.
Brad Wheeler Colin McKinnon
Partner Executive Director
Strategy and Transactions NZ Private Capital
EY New Zealand
New Zealand Private Capital Monitor 2021 | 5Mid-market private equity
Mid-market private equity investment/divestment summary 2010 to 2020
800
700
600
500
400
300
200
100
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Investment Divestment Average investment across all periods
Mid-market investment Mid-market investments — half year split
• The level of Mid-market investment
from transactions with disclosed 400
values increased from $398.8m
to a record $735.8m in 2020. 350
• The average investment value has
increased from $13.8m in 2019 to 300
$21.6m in 2020. This remains higher
than the historical 10 year average
Investments (NZ$m)
250
trend at $14.9m.
• Mid-market transactions exclude any
200
transactions where the investee has
an estimated enterprise value over
150
$150m, as these are categorised as
Buy-out / Top-end transactions for the
purposes of this report. 100
• 2020 returned to the historical trend
of most deals completing in the second 50
half of the year, potentially driven by
Covid-19 impacts in the first half of 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
the year.
First half Second half
6 | New Zealand Private Capital Monitor 2021It was great to see New Zealand
businesses supported by so many
“
funds through such an uncertain time.
Andrew Frankham
NZ Private Capital Chair
Mid-market investment Mid-market investments — domicile
• New Zealand domiciled funds 800
continued to have the largest
share of the Mid-market, including
700
investments by Pencarrow Private
Equity, Milford Asset Management,
Direct Capital, Oriens Capital and 600
Waterman Capital.
Investments (NZ$m)
• Mid-market investment activity 500
was also driven by investment from
Australian domiciled funds including 400
BGH Capital and Advent Partners.
• There was also an increased level 300
of activity from funds outside of
Oceania in 2020 including Serent 200
Capital’s investment in Actionstep
and Bansk Group’s investment 100
in Ethique.
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
New Zealand Australia Rest of the World
Mid-market divestment Mid-market divestments — half year split
• There was a slight increase in mid- 150
market divestment activity in 2020
($111.9m) compared to 2019
($91.9m). Divestment activity was
primarily driven by transactions by 120
Direct Capital and Champ Ventures.
Divestments (NZ$m)
90
60
30
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
First half Second half
New Zealand Private Capital Monitor 2021 | 7Venture &
early stage capital
Overview
Since 2009 our survey results for venture capital activity have been supplemented
by deal information from New Zealand Growth Capital Partners (formerly NZVIF).
This has led to broader data capture, and the inclusion of early stage investment
activity within the Venture segment. Early stage investment includes activity of
fund managers, angel networks and individuals. We have included only activity
of fund managers (who employ a General Partner / Limited Partner structure)
in our dataset.
Fund managers or General Partners manage capital provided by investors.
Fund managers have investment programmes to attract investor’s capital prior
to deploying the capital. Their activity is distinct from angel networks that help
individuals to invest their own capital usually on a deal by deal basis.
The size of early stage funds varies from large venture capital funds (greater than
$50m funds under management) to small and micro Venture ($2m-10m funds
under management). The stage of investment describes the path from seed/early
stage to expansion.
Venture & early stage investment
• Total investment value of disclosed Venture activity in NZ was $127.2m in
2020 (compared to $112.2m in 2019). This increase is driven by an increase
in the number of transactions from 46 in 2019 to 92 in 2020.
Venture & early stage investment summary
300
250
Total activity (NZ$m)
200
150
100
50
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
First half Second half
8 | New Zealand Private Capital Monitor 2021Stage of investment Stage of investment
This chart shows the stages of FY20
investment of Venture activity
FY19
in New Zealand.
• Venture & early stage capital —
FY18
sector review. FY17
• Technology and IT / software remain FY16
key focus sectors for Venture
investment. FY15
• Other sectors obtaining Venture FY14
funding in the year included health / FY13
biosciences and manufacturing.
FY12
FY11
FY10
0 50 100 150 200 250 300
Investment value $m
Seed & Start-up Early stage expansion Expansion
Undisclosed Mature/later stage Other
Venture & early stage capital – Venture & early stage investments by sector
divestment 100
• Divestment activity in 2020 was
minimal with one divestment (value
not disclosed) noted. This compares 80
to divestments of $6.6m across
% of total VC investments
seven transactions in 2019.
60
• Divestment activity presented in this
report is limited by the availability
of information on transaction values
in some cases. 40
20
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Energy Food/Beverage Health/Biosciences IT/Software
Manufacturing Media/Comms Others Technology
New Zealand Private Capital Monitor 2021 | 910 | New Zealand Private Capital Monitor 2021
Buy-out private equity
Buy-out private equity investment/divestment summary 2010 to 2020
2000
Investment / divestment (NZ$m)
1500
1000
500
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Investment Divestment
Overview Buy-out investment
Buy-out transactions are defined as those transactions with B
► uy-out investments were undertaken by overseas
an estimated enterprise value over $150m. The observed funds, including:
transaction value trends from 2010 to date are a result of • The 2020 headline transaction of EQT Infrastructure’s
a small number of high value transactions in this segment. takeover of Metlifecare.
2020 saw a record level of combined buy-out investment
• BGH Capital and Ontario Teachers Pension Plan’s
and divestment activity, albeit entirely driven by investment.
takeover of Abano Healthcare.
New Zealand Private Capital Monitor 2021 | 11Case Studies Trans-Tasman TR Group welcomes new investors to support growth In 2020, Direct Capital, NZ Super Fund and iwi investment vehicle Te Pūia Tāpapa together acquired a 31 percent shareholding in TR Group alongside founders, Managing Director Andrew Carpenter and the Carpenter family. TR Group is New Zealand’s largest heavy vehicle rental and lease company. It was established in 1992 and today serves over 1,300 customers with a fleet of more than 6,500 vehicles from 15 branches throughout NZ and Australia. The company employs over 150 dedicated staff members and is headquartered in Auckland. TR Group has a differentiated service offering from other market participants, giving customers the ability to outsource key areas of fleet management including: residual risk, driver training and safety, compliance, maintenance and fleet redundancy. The customer experience is focused on providing the best possible vehicles for the work required and ongoing support to optimise vehicle and fleet performance throughout their contracted lives. The new investors have come on-board to support TR Group’s growth – both in NZ and Australia. “We look forward to working with Andrew and his team and supporting TR Group’s growth. We are particularly excited about the opportunity to expand into Australia, which is from TR’s perspective an untapped market” said Direct Capital’s Hugh Cotterill. Direct Capital was established in 1994 and is New Zealand’s largest private equity firm, having raised $1.7 billion in capital for investment into private companies. Direct Capital has partnered with some of New Zealand’s best-known and most successful businesses, including Beca, AS Colour, Mondiale VGL, and the now-NZX-listed Ryman Healthcare, Scales Corporation and New Zealand King Salmon. The New Zealand Superannuation Fund invests money on behalf of the New Zealand Government to help pay for the increased cost of universal pension entitlements in the future. A long-term, growth-oriented investor, the Fund has around NZ$57 billion in assets, including $7 billion invested in New Zealand. The Te Pūia Tāpapa Investment Fund is made up of 26 Iwi and Māori entities. Its investors represent diversity of scale and geography comprising Iwi and Māori entities. 12 | New Zealand Private Capital Monitor 2021
Mint Innovation raises expansion capital First AML accelerates with Icehouse Ventures
Mint Innovation has developed a unique patented bio In September 2020, anti-money laundering tech startup
metallurgical approach to recover precious metals (gold, First AML raised NZ$8 million in a Series A funding round
palladium and copper) from electronic waste and other led by US-based Bedrock Capital, with support from Pushpay
feedstock. A $20 million Series B round in 2020 was raised founder Chris Heaslip and Icehouse Ventures.
to build two ‘build to operate’ plants before roll out of a First AML Co-founder Milan Cooper formed First AML in 2017
licencing model. with his two co-founders, Bion Behdin and Chris Caigou, who
Mint Innovation CEO, Will Barker had concern about trying were working as corporate bankers when the first phase of
to raise $20 million in a Covid world but had little trouble AML regulations was introduced for banks in 2013. At the
getting the money with support from existing investor Movac. start of 2019, First AML took a $200k seed investment from
About 20% of the capital came from overseas investors Icehouse Ventures. Later that year they raised $2.5 million
with most of the remainder from existing Kiwi investors. in angel funding, predominantly from Chris Heaslip and Eliot
Mint was co-founded in 2016 by former LanzaTech staffers Crowther. Mr Cooper credits the Icehouse Ventures team for
Will Barker and Matthew Rowe along with Ollie Crush inspiring the company’s co-founders to think big from the
(Chief Scientific Officer). outset.
Mint Innovation was incubated at the deep tech hub Level First AML’s regulatory technology platform streamlines
Two in Auckland’s Parnell that was also home in the early AML anti-money laundering compliance for financial service
days to LanzaTech and Rocket Lab. Mint Innovation started providers, law firms, real estate agencies and accountants.
with $1m in seed money from Ice Angels and WNT Ventures The company’s end-to-end Customer Due Diligence platform
and then, in 2018, raised $5.2m in a Series A round to build automates the identity verification of customers, giving
their current premises and demonstration scale plant in East companies complete visibility and management oversight
Tamaki, Auckland. of the process, minimising money laundering risk.
Mint Innovation’s process breaks down e-waste, like computer First AML plans to accelerate global market expansion and
circuit boards, and uses micro-organisms that suck up precious product development.
metals like gold and palladium. Milan Cooper said that: “Interest from customers in countries
Mint’s next step is building two commercial plants, in Australia like Australia and the US is heating up as businesses look to
and the UK, in cities where the scale of e-waste collection prepare for new regulatory requirements, and we are now well
allows low-cost processing of the waste. The company will also placed to capture these opportunities and offer the world’s
expand its 20 staff to about 30 once the plants are built. best AML compliance platform thanks to our new investment
partners at Bedrock. This is a $184 billion global market —
Will Barker said that: “There’s an opportunity for us to deploy
there’s massive opportunity out there.”
these plants in every city in the world essentially, but the first
step for us is deploying reasonably locally – we’re exploring Icehouse Ventures funds represent more than $140m funds
how to get this into Australia and we’re also looking at the UK, under management. Each fund has a distinct approach and
which are both really attractive environments for rolling out set of investors, but they all share a common mission: back
our first commercial offerings.” New Zealand’s bravest founders.
Barker thinks there will eventually be an opportunity to build
a commercial scale plant in New Zealand.
About Movac
Movac is a full lifecycle technology investor, from Seed to
Series B/C onwards. They are high support, high conviction
and bring Kiwi capital and global talent to grow businesses.
With 100+ years collective experience commercialising
and growing businesses, Movac also share the collective
networks and functional experience of their extensive
Operating Partner and Executive in Residence team.
New Zealand Private Capital Monitor 2021 | 13Opinion —
NZ Private Capital Chair
The year 2020 was a year of unprecedented disruption caused by the protracted
impact of the global pandemic although some industries and sectors were more
impacted than others. Many businesses supported by private capital funds were
able to recover to new business levels and adjust practices. The economic recovery
will take time but business outlook is optimistic. Investor appetite for private markets
is healthy including the New Zealand early-stage funds.
It was a busy year for Private Capital investment in New Zealand, with a record
$2.4 billion of capital deployed into accelerating the growth of New Zealand
companies and reflects a strong and healthy private capital market. Mid-market
activity nearly doubled on the prior year to a record $736m invested. In 2020,
investment in early stage and Venture Capital totalled $127m consistent with the
long-term trend, however the volume of Venture Capital transactions doubled from
46 to 92 investments.
Over the last decade more than $8.5 billion has been invested in growing
New Zealand companies. In that same time, over $4.6 billion has been returned
to investors for reinvestment in new investment opportunities, or into the wider
Andrew Frankham economy.
NZ Private Capital Chair The mid-market continues to be a strong performer with over $2.8 billion invested
in the last decade and $1.0 billion returned to investors. Capital currently invested
continues to accelerate the ambitions of exciting companies in fund portfolios.
Investment from disclosed transactions increased significantly (82%) from $399m in
2019 to $726m, as average transaction size increased from $13.8m to $21.6m.
Venture and early-stage investment activity was $127m across 92 transactions in
2020 compared to $112m across 46 transaction in 2019. A feature of venture and
early-stage activity is the growing number of new funds raising capital and investing
in new technology companies.
Over the decade to December 2020, $1.0 billion has been invested in 587 early-
stage transactions. In 2019, the average transaction size was $2.4 million, but in
2020 the average transaction size was $1.4m. The commercialisation of deep-tech
and science innovation continues to attract investors leading to more funds with a
specialist sector focus.
The EY New Zealand Private Capital Monitor measures the level of professional
investment activity in New Zealand’s private markets. Private markets are important
in New Zealand as privately-owned businesses represent a greater portion of
the total market than is the case in other comparable countries. The Monitor is
important research for our industry and we are grateful to EY for its production.
14 | New Zealand Private Capital Monitor 2021“
Capital available
There continues to be a significant amount of capital available from domestic and
The 2021 Monitor international funds providing alternatives for companies raising capital. We estimate
that domestic fund managers have over $1.4 billion of capital looking for investment
reports on a year that, in opportunities. Most of this capital is with mid-market managers investing in medium-
sized businesses. Whilst Covid lockdowns impacted some fund-raising processes,
spite of global pandemic other funds were raised relatively quickly as investors continued to seek access to
private capital opportunities with proven Managers. An encouraging development
disruption, recovered has been the opening presence of KiwiSaver funds in recently raised funds.
to achieve new records. The Government Elevate Fund was established for a launch in early 2020 to support
the early-stage Series A/B venture domestic private capital market. At the time of
The availability of private this report, Elevate had announced commitments to four fund managers representing
approximately 30% of the fund. Several new venture funds have launched fund-
capital in New Zealand raising adding to the prospect of further Series A/B capital available for early-stage
plays an important part companies.
in growth ambitions for Outlook
The positive outlook of survey participants is optimistic compared to the prior
New Zealand businesses. year survey.
The post-Covid recovery growth offers new Investment opportunities in private
Andrew Frankham New Zealand companies and good prospects for experienced managers to accelerate
NZ Private Capital Chair growth and build capability. Institutional investors to continue to support mandates
targeting private capital.
Industry development
We are actively engaged with Government as a voice for private capital. We were
able to contribute private capital views to the government during the development
of Covid related programmes for New Zealand businesses.
Lack of access to internationally capable senior executives in technical roles is
a current issue impacting businesses. We continue to share our concerns with
Government.
The view of the private market community is clear that growth equity transactions
are never just about capital – there are numerous additional benefits alongside the
money. Private capital investors offer a range of skills and disciplines to complement
and support a company so that opportunities are maximised.
An important ambition is to improve our capacity to connect business owners with
the capital they need and to help businesses navigate and understand the world of
private capital, and to dispel some of the negative myths.
As an industry body, we continue to explore ways to promote excellent outcomes
for all stakeholders. Our focus is on being more vocal about the combined strength
of investors, fund managers and company owners in building strong and enduring
New Zealand companies.
Professional development best practice workshops for members include governance
requirements (i.e., AML, CRS, FATCA) and increased focus on ESG and Climate Risk.
I encourage you to support the Association’s efforts and wherever possible, to
contribute to the conversation around accelerating growth and improving productivity
through the continued development of New Zealand’s private capital markets.
New Zealand Private Capital Monitor 2021 | 15Outlook
“
Industry outlook
Each year we ask respondents about their outlook for New Zealand Private Capital.
The outlook for the New Zealand private capital market is optimistic compared to
2019 due to the recovery from COVID-19 both in New Zealand and across the The outlook for the
global economy.
Fund managers highlighted key factors affecting portfolio companies as a result of
New Zealand
the pandemic, including ongoing global disruption including supply chain issues,
challenges of meeting growth plans in a period of global economic uncertainty,
private capital
and availability of debt funding.
market is optimistic
Plans for investee companies compared to
Respondents were asked their plans in relation to new investee companies.
In 2020 these plans included:
2019 due to the
• Expanding into new markets recovery from
• Increasing headcount
• Increasing capital expenditure
COVID-19 both in
• Launching new products New Zealand and
• Market acquisitions
across the global
Challenges & opportunities economy. Private
Respondents identified the following factors which they consider will impact venture
capital and private equity activity in New Zealand over the next 12 months. capital funds are
Venture capital respondents noted:
• Challenges include: lack of software development talent, shortage of human
well-placed to
capital, rising labour costs, valuation expectations of vendors and market
conditions in 3-5years.
help accelerate
• Opportunities include low interest rate environment and multiple choice of the ambition of
investment opportunities/exit options.
Private equity respondents highlighted the following:
many New Zealand
• Challenges include: strong competition with continued pricing pressure, debt businesses.
appetite from Australian banks, shortage of human capital, sustainability/climate
change concerns, high level of dry power, ongoing effects of Covid-19, border Brad Wheeler
policy and supply chain constraints. Partner, EY New Zealand
• Many new Venture funds emerging bringing challenges as well — competing for
deals and attracting capital.
• Opportunities include low interest rate environment investment opportunities
accelerating shift to digital.
16 | New Zealand Private Capital Monitor 2021Next 6 months
Respondents’ short-term outlook is optimistic, reflecting the recovery
from Covid-19 seen to date.
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
0% 20% 40% 60% 80% 100%
Optimistic Neutral Pessimistic
Next 18 months
The outlook for the next 18 months is more positive with the majority
of respondents optimistic the economy will recover and return to
business as usual.
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
0% 20% 40% 60% 80% 100%
Optimistic Neutral Pessimistic
New Zealand Private Capital Monitor 2021 | 17Outlook by sector
For 2020, respondents were asked to identify which sectors
they were most optimistic and most pessimistic about.
23% 31%
Other Health/Biosciences
Sectors most
8% optimistic about
Energy
38%
IT/Software
The Health/Biosciences sector and IT/software continue to generate
the most optimism amongst fund managers, with Health/Bioscience
companies expected to continue to benefit from Covid-19.
At the other end of the spectrum, fund managers are most pessimistic
about the energy and media/comms sectors.
18 | New Zealand Private Capital Monitor 202131% 15%
Other Food/Beverage
Sectors most 23%
pessimistic about Media/Comms
23% 8%
Energy Manufacturing
New Zealand Private Capital Monitor 2021 | 19Activity summary
FY10 FY11 FY12
Investment
Venture capital 94.4 36.6 26.8
Mid-market PE 130.0 223.0 84.6
Buy-out 70.0 294.5 0.0
294.4 554.0 111.4
Investment (transactions of known values only)
Venture capital 67.0 70.0 50.0
Mid-market PE 14.0 12.0 12.0
Buy-out 1.0 2.0 0.0
82.0 84.0 62.0
Divestment
Venture capital 1.8 0.0 0.0
Mid-market PE 108.2 116.3 76.7
Buy-out 0.0 791.6 0.0
110.0 907.9 76.7
Divestment (no. of transactions)
Venture capital 2.0 0.0 0.0
Mid-market PE 5.0 7.0 5.0
Buy-out 0.0 3.0 0.0
7.0 10.0 5.0
Total activity (Investments and divestments) NZ$ millions
Venture capital 96.2 36.6 26.8
Mid-market PE 238.2 339.2 161.3
Buy-out 70.0 1,086.1 0.0
404.4 1,461.9 188.1
Average invest transaction size
Venture capital 1.4 0.5 0.5
Mid-market PE 9.3 18.6 7.0
Buy-out 70.0 147.2 0.0
Average for all 3.6 6.6 1.8
20 | New Zealand Private Capital Monitor 2021FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
54.8 55.8 54.5 95.2 217.3 269.7 112.2 127.2
191.5 243.5 292.1 100.8 333.7 245.0 398.8 735.8
210.0 0.0 0.0 1,005.6 323.0 579.0 635.0 1,556.0
456.2 299.3 346.6 1,201.6 876.0 1,093.6 1,145.9 2,419.0
66.0 62.0 68.0 53.0 50.0 41.0 46.0 92
15.0 19.0 18.0 11.0 17.0 19.0 29.0 34
1.0 0.0 0.0 5.0 3.0 3.0 2.0 2
82.0 81.0 86.0 69.0 70.0 63.0 77.0 128
0.0 0.4 0.0 0.0 51.2 1.1 6.6 0.0
20.2 148.3 147.8 134.9 62.4 100.8 91.9 111.9
645.2 471.6 0.0 223.4 0.0 503.4 935.6 0
665.4 620.3 147.8 358.3 113.6 605.3 1,034.2 111.9
1.0 2.0 0.0 0.0 3.0 1.0 7.0 1
3.0 5.0 4.0 5.0 4.0 4.0 4.0 4
3.0 2.0 0.0 4.0 0.0 3.0 3.0 0
7.0 9.0 4.0 9.0 7.0 8.0 14.0 5
54.8 56.2 54.5 95.2 269.3 271.1 118.8 127.2
211.7 391.7 439.9 235.7 396.1 345.7 490.7 847.7
855.2 471.6 0.0 1,229.0 325.0 1,082.4 1,570.6 1,556.0
1,121.7 919.5 494.4 1,559.0 990.4 1,699.93 2,180.1 2,530.9
0.8 0.9 0.8 1.8 4.4 6.6 2.4 1.4
12.8 12.8 16.2 9.2 19.6 12.9 13.8 21.6
210.0 0.0 0.0 201.1 108.3 193.0 317.5 778.0
5.6 3.7 4.0 17.4 12.5 17.4 14.9 18.9
New Zealand Private Capital Monitor 2021 | 21About the survey
The survey
The New Zealand Private Capital survey is based on responses received from venture
capital and private equity participants in the New Zealand market, including firms
from both New Zealand and Australia. The values reported represent the equity
component of transactions only. We have also included in our analysis any publicly
announced information, acknowledging S&P Capital IQ as a source of data, in
addition to venture capital activity as reported in Start Up Investment magazine
including data collected by NZ Growth Capital Partners We do note that there are
a small number of industry participants that elect not to participate.
Data integrity/privacy policy
All data received through The New Zealand Private Capital survey process is
the property of the NZ Private Capital and EY. Other than for use in the monitor
document, all data is subject to the principles of EY’s Privacy Policy and will not
be sold or released to any other parties.
If you are aware of a colleague that did not receive a copy of the New Zealand
Private Capital Monitor or if you would like to participate in future surveys, please
contact either Brad Wheeler or Tom Goad at EY or Colin McKinnon at NZ Private
Capital. Contact details are provided below.
About EY Strategy and Transactions (SaT)
How organisations manage their capital agenda today will define their competitive
position tomorrow. We work with our clients to help them make better and more
informed decisions about how they strategically manage capital and transactions in
a changing world. Whether you’re preserving, optimising, raising or investing capital,
EY’s Strategy and Transactions bring together a unique combination of skills, insight
and experience to deliver tailored advice attuned to your needs —
helping you drive
competitive advantage and increased shareholder returns through improved decision
making across all aspects of your capital agenda.
For more information about the New Zealand Private Capital Monitor or to find out
more about EY, please contact one of the specialists noted below:
Brad Wheeler Andrew Taylor Tom Goad
Partner Partner Partner
EY New Zealand EY New Zealand EY New Zealand
Mob: +64 21 228 5490 Mob: +64 27 289 8449 Mob: +64 27 489 9724
brad.wheeler@nz.ey.com andrew.taylor@nz.ey.com tom.goad@nz.ey.com
22 | New Zealand Private Capital Monitor 2021About the NZ Private Capital Association
NZ Private Capital is a not-for-profit industry body committed to developing the
venture capital and private equity industry in New Zealand. Its core objectives
include the promotion of the industry and the asset class on both a domestic and
international basis and working to create a world-class venture capital and private
equity environment.
Members include venture capital and private equity investors, financial organisations,
professional advisors, academic organisations and government or quasi-government
agencies.
For further information about the NZ Private Capital please contact:
Colin McKinnon Andrew Frankham
Executive Director Chair
NZ Private Capital NZ Private Capital
Mob: +64 27 640 6406 andrew.frankham@directcapital.co.nz
info@nzprivatecapital.co.nz
www.nzprivatecapital.co.nz
New Zealand Private Capital Monitor 2021 | 23EY | Building a better working world EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com. © 2021 Ernst & Young New Zealand. All Rights Reserved. APAC No. NZ00001185 NZ20215-000676 ED None This communication provides general information which is current at the time of production. The information contained in this communication does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Ernst & Young disclaims all responsibility and liability (including, without limitation, for any direct or indirect or consequential costs, loss or damage or loss of profits) arising from anything done or omitted to be done by any party in reliance, whether wholly or partially, on any of the information. Any party that relies on the information does so at its own risk. The views expressed in this article are the views of the author, not Ernst & Young. ey.com
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